        In a landmark development for institutional finance, Ripple has partnered with UK-based digital asset exchange Archax and global asset manager abrdn to launch the first tokenized money market fund on the XRP Ledger (XRPL). This initiative brings abrdn’s $4.77 billion US Dollar Liquidity Fund into the blockchain realm, offering institutional investors streamlined access to real-world assets (RWAs) through digital tokens. ​
The tokenized fund allows professional investors to engage with abrdn’s liquidity fund via Archax’s FCA-regulated platform, leveraging XRPL’s capabilities for enhanced efficiency and transparency. Ripple has committed $5 million to abrdn’s Lux fund, underscoring its dedication to integrating traditional finance with blockchain technology. ​
Duncan Moir, Senior Investment Manager at abrdn, emphasized the benefits of on-chain settlement, stating that it offers significant operational advantages and represents a functional and efficient venue for financial transactions.
This move aligns with Ripple's broader strategy to position XRPL at the forefront of institutional decentralized finance. By facilitating the tokenization of RWAs, Ripple aims to unlock cost savings and settlement efficiencies in capital markets. The company projects that the tokenized asset market could reach $16 trillion by 2030, highlighting the transformative potential of blockchain in financial services. ​
The launch of this tokenized fund comes amid increasing institutional interest in XRP. For instance, 21Shares' XRP exchange-traded product (ETP) recently surpassed $140 million in assets under management, reflecting a surge in demand for regulated exposure to XRP. ​
As Ripple continues to bridge the gap between traditional finance and blockchain technology, this initiative marks a significant step toward mainstream adoption of digital assets in institutional portfolios.
Ripple has launched the first tokenized money market fund on the XRP Ledger in partnership with Archax and abrdn, opening the door for institutional investment in XRP and real-world assets via blockchain technology.
Written by Crc
COINRATECAP